0001127703false00011277032025-02-242025-02-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 24, 2025
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ProAssurance Corporation
(Exact name of registrant as specified in its charter)
Delaware001-1653363-1261433
(State of Incorporation)
(Commission File No.)
(IRS Employer I.D. No.)
100 Brookwood Place,Birmingham, AL35209
(Address of Principal Executive Office )(Zip code)
Registrant’s telephone number, including area code:
(205)
877-4400
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-(c) under the Exchange Act
(17CFR 240.13e-(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per sharePRANew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
          Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
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ITEM 2.02 RESULTS OF OPERATION AND FINANCIAL CONDITION
On February 24, 2025 we issued a news release reporting the results of our operations for the quarter and year ended December 31, 2024. The text of the release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
ITEM 7.01 REGULATION FD DISCLOSURES
We are furnishing investor presentation materials to be used starting February 24, 2025 as Exhibit 99.2. The presentation is available under Presentations under the News & Presentation Materials tab of the Investor Relations section of our website (http://investor.proassurance.com).
We also have updated our online disclosure of our entire investment portfolio to provide details of our holdings through December 31, 2024. The disclosure is available under Quarterly Investment Supplements under the Financial Information section of the Investor Relations section of our website.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
The information we are furnishing under Items 7.01 and 9.01 of this Current Report on Form 8K, including Exhibits 99.1and 99.2, are not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) as amended, or otherwise subject to the liability of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such filing.
SIGNATURE
Pursuant to the requirements of the Securities Exchange act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 24, 2025
PROASSURANCE CORPORATION
by: /s/ Jeffrey P. Lisenby
-----------------------------------------------------
Jeffrey P. Lisenby
General Counsel

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NEWS RELEASE
For More Information:
Heather J. Wietzel • SVP, Investor Relations
800-282-6242 • 205-776-3028 • InvestorRelations@ProAssurance.com
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ProAssurance Reports Results for Fourth Quarter and Full-Year 2024
BIRMINGHAM, AL – February 24, 2025 – ProAssurance Corporation (NYSE: PRA), an industry-leading specialty insurer with extensive expertise in medical professional liability and a core small-cap value equity in the financials sector, today reported net income of $16.2 million, or $0.31 per diluted share, and operating income(1) of $18.3 million, or $0.36 per diluted share, for the three months ended December 31, 2024. For full-year 2024, ProAssurance reported net income of $52.7 million, or $1.03 per diluted share, and operating income(1) of $48.6 million, or $0.95 per diluted share.
Fourth Quarter 2024(2) Highlights
•Specialty P&C segment combined ratio(1) of 100.9% demonstrates another quarter of progress from management’s ongoing actions focused on achieving sustained profitability
•Net investment income increased 9% as we take advantage of the current interest rate environment as the portfolio matures
•Earnings benefited from solid returns from limited partnership investments (reported as equity in earnings of unconsolidated subsidiaries)
•Book value per share was $23.49 at December 31, 2024, up $1.67 from $21.82 at year-end 2023 due to net income of $53 million for 2024 as well as after-tax unrealized holding gains of $26 million from our fixed maturity portfolio; non-GAAP adjusted book value per share(1) rose to $26.86 from $25.83
(1) Represents a Non-GAAP financial measure that excludes certain items that are not indicative of the performance of our ongoing core operations, including net investment gains and losses, foreign currency exchange rate gains and losses, and results of non-core operations. Non-core operations include the net results from our previous participation in Lloyd's Syndicates operations, which is currently in run-off. See a reconciliation of the Non-GAAP financial measure to its GAAP counterpart under the heading “Non-GAAP Financial Measures” that follows.
(2) Comparisons are to the fourth quarter of 2023 unless otherwise noted.
Management Commentary & Results of Operations
“The ongoing core operations in our Specialty P&C segment delivered a full-year combined ratio(1) of 104.0%, including net favorable prior accident year reserve development of 5.9 points,” said Ned Rand, President and Chief Executive Officer of ProAssurance. He added, “This segment, which is largely made up of our Medical Professional Liability line of business, represents more than 75% of total earned premium. We believe we are ahead of many in this space in achieving rate levels that put us on track to outpace severity trends that remain challenging.
“Specialty P&C renewal premium increases of 8% this quarter are part of the cumulative +65% premium change we have accomplished since 2018,” Rand added. “We continue to forgo renewal and new business opportunities that we believe do not meet our expectation of rate adequacy in the current loss environment, although retention for the Specialty P&C segment was a solid 84% for 2024, including 87% for our standard physicians Medical Professional Liability book of business. In this loss environment, we will continue to focus on our targeted healthcare market segments with disciplined claims management and underwriting.”
Rand noted, “We are confident that the cyclical insurance markets we have served for many years will respond to our efforts. However, before turning our focus to growth, we believe it is prudent to continue to shrink in some areas where market conditions remain a headwind, which will help us reach our target for long-term sustained profitability across all business segments.”
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CONSOLIDATED INCOME STATEMENT HIGHLIGHTS
Selected consolidated financial data for each period is summarized in the table below.
Three Months Ended December 31Year Ended December 31
($ in thousands, except per share data)20242023Change20242023Change
Revenues
Gross premiums written(1)
$207,673 $208,795 (0.5 %)$1,050,867 $1,082,279 (2.9 %)
Net premiums written$188,545 $195,016 (3.3 %)$953,675 $985,994 (3.3 %)
Net premiums earned$241,074 $247,329 (2.5 %)$968,250 $977,397 (0.9 %)
Net investment income36,811 33,705 9.2 %144,538 128,419 12.6 %
Equity in earnings (loss) of unconsolidated subsidiaries5,820 1,341 334.0 %22,203 6,791 226.9 %
Net investment gains (losses)(2)
(3,243)10,672 (130.4 %)1,903 13,828 (86.2 %)
Other income (expense)(1)
9,638 3,913 146.3 %13,510 10,777 25.4 %
Total revenues(1)
290,100 296,960 (2.3 %)1,150,404 1,137,212 1.2 %
Expenses
Net losses and loss adjustment expenses182,410 195,248 (6.6 %)739,435 800,494 (7.6 %)
Underwriting, policy acquisition and operating expenses(1)
80,927 81,965 (1.3 %)319,339 300,744 6.2 %
SPC U.S. federal income tax expense (benefit)724 278 160.4 %1,766 1,629 8.4 %
SPC dividend expense (income)1,965 3,064 (35.9 %)4,444 6,234 (28.7 %)
Interest expense5,339 6,672 (20.0 %)22,342 23,150 (3.5 %)
Goodwill impairment— — nm— 44,110 nm
Total expenses(1)
271,365 287,227 (5.5 %)1,087,326 1,176,361 (7.6 %)
Income (loss) before income taxes18,735 9,733 92.5 %63,078 (39,149)261.1 %
Income tax expense (benefit)2,566 3,356 (23.5 %)10,334 (545)1,996.1 %
Net income (loss)$16,169 $6,377 153.6 %$52,744 $(38,604)236.6 %
Non-GAAP operating income (loss)(3)
$18,268 $(2,765)760.7 %$48,592 $(9,014)639.1 %
Weighted average number of common shares outstanding
Basic51,156 50,969 51,097 52,642 
Diluted51,411 51,153 51,266 52,788 
Earnings (loss) per share
Net income (loss) per diluted share$0.31 $0.12 $0.19 $1.03 $(0.73)$1.76 
Non-GAAP operating income (loss) per diluted share$0.36 $(0.05)$0.41 $0.95 $(0.17)$1.12 
(1) Consolidated totals include inter-segment eliminations. The eliminations affect individual line items only and have no effect on net income (loss). See Note 16 of the Notes to Consolidated Financial Statements in our December 31, 2024 report on Form 10-K for amounts by line item.
(2) This line item typically includes both realized and unrealized investment gains and losses, investment impairments losses, and the change in the fair value of the contingent consideration in relation to the NORCAL acquisition. Detailed information regarding the components of net investment gains (losses) are included in Note 3 of the Notes to Consolidated Financial Statements in our December 31, 2024 report on Form 10-K.
(3) See a reconciliation of net income (loss) to non-GAAP operating results under the heading “Non-GAAP Financial Measures” that follows.
The abbreviation “nm” indicates that the information or the percentage change is not meaningful.
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BALANCE SHEET HIGHLIGHTS
($ in thousands, except per share data)December 31, 2024December 31, 2023
Total investments
$4,367,427 $4,349,781 
Total assets
$5,574,273 $5,631,925 
Total liabilities
$4,372,524 $4,519,945 
Common shares (par value $0.01)
$638 $636 
Retained earnings
$1,434,725 $1,381,981 
Treasury shares
$(469,694)$(469,702)
Shareholders’ equity
$1,201,749 $1,111,980 
Book value per share
$23.49 $21.82 
Non-GAAP adjusted book value per share(1)
$26.86 $25.83 
(1) Adjusted book value per share is a Non-GAAP financial measure. See a reconciliation of book value per share to Non-GAAP adjusted book value per share under the heading “Non-GAAP Financial Measures” that follows.
CONSOLIDATED KEY RATIOS
Three Months Ended December 31Year Ended December 31
2024202320242023
Current accident year net loss ratio
80.4 %80.0 %80.5 %81.3 %
Effect of prior accident years’ reserve development
(4.7 %)(1.1 %)(4.1 %)0.6 %
Net loss ratio75.7 %78.9 %76.4 %81.9 %
Underwriting expense ratio33.6 %33.1 %33.0 %30.8 %
Combined ratio109.3 %112.0 %109.4 %112.7 %
Operating ratio94.0 %98.4 %94.5 %99.6 %
Return on equity(1)
5.3 %2.4 %4.6 %(3.5 %)
Non-GAAP operating return on equity(1)(2)
6.0 %(1.0 %)4.2 %(0.8 %)
Combined ratio, excluding Lloyd’s Syndicates Operations(3)
106.6 %112.2 %109.0 %113.0 %
(1) Quarterly amounts are annualized. Refer to our December 31, 2024 report on Form 10-K under the heading “Non-GAAP Operating ROE” in the Executive Summary of Operations section for details on our calculation.
(2) See a reconciliation of ROE to Non-GAAP operating ROE under the heading “Non-GAAP Financial Measures” that follows.
(3) Our consolidated combined ratio as reported for the three months and year ended December 31, 2024 includes an underwriting loss of $6.3 million and $4.7 million, respectively, as compared to an underwriting loss of $0.2 million and underwriting income of $0.6 million for the same respective periods in 2023 within in our Specialty P&C segment associated with our Lloyd's Syndicates operations, which is currently in run-off. Further, underwriting results reflect our acceleration of certain aviation-related losses into the fourth quarter of 2024. Refer to our December 31, 2024 report on Form 10-K under the heading “Losses and Loss Adjustment Expenses” in the Segment Results - Specialty Property & Casualty section for details. Given these underwriting results are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under GAAP, we have excluded their impact from our calculation of the consolidated combined ratio in the table above.

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SPECIALTY P&C SEGMENT RESULTS
Three Months Ended December 31Year Ended December 31
 ($ in thousands)
20242023% Change20242023% Change
Gross premiums written$161,561 $161,770 (0.1 %)$807,463 $835,430 (3.3 %)
Net premiums written$148,293 $154,636 (4.1 %)$737,502 $762,580 (3.3 %)
Net premiums earned$185,805 $193,611 (4.0 %)$747,942 $755,817 (1.0 %)
Other income (expense)
1,015 1,589 (36.1 %)4,373 4,695 (6.9 %)
Total revenues186,820 195,200 (4.3 %)752,315 760,512 (1.1 %)
Net losses and loss adjustment expenses(143,924)(148,620)(3.2 %)(578,486)(624,809)(7.4 %)
Underwriting, policy acquisition and operating expenses(49,790)(54,356)(8.4 %)(203,207)(195,303)4.0 %
Total expenses(193,714)(202,976)(4.6 %)(781,693)(820,112)(4.7 %)
Segment results$(6,894)$(7,776)11.3 %$(29,378)$(59,600)50.7 %

SPECIALTY P&C SEGMENT KEY RATIOS(1)
Three Months Ended December 31Year Ended December 31
2024202320242023
Current accident year net loss ratio82.9 %78.0 %82.8 %83.5 %
Effect of prior accident years’ reserve development(8.7 %)(1.2 %)(5.9 %)(0.3 %)
Net loss ratio74.2 %76.8 %76.9 %83.2 %
Underwriting expense ratio26.7 %28.0 %27.1 %25.6 %
Combined ratio100.9 %104.8 %104.0 %108.8 %
(1) Represents Non-GAAP financial measures. See a reconciliation to their GAAP counterparts under the heading “Non-GAAP Financial Measures” that follows.
ProAssurance is a leader in the competitive Medical Professional Liability market, which made up over 90% of Specialty P&C segment gross written premiums for the year ended December 31, 2024.
The combined ratio from the segment’s ongoing core operations improved 3.9 percentage points compared to last year’s fourth quarter, while the full-year combined ratio improved 4.8 percentage points. We are benefiting from our continued focus on price adequacy and disciplined underwriting as well as our ability to target segments within healthcare where there are opportunities to write business that we believe will meet our profitability objectives.
•Premiums: Renewal pricing remained strong at 8% for the quarter and 9% for the full-year while retention remained solid. New business was below last year for the quarter and the full-year as we focus on risk selection and pricing levels that support progress toward our profitability targets.
•Current accident year loss ratio: Underwriting and pricing actions taken over the past 12 months had a positive impact on both the fourth quarter and full year 2024 current accident year loss ratios for the Medical Professional Liability business. However, in the fourth quarter, that progress was overshadowed by a prior year decrease to our estimate of unallocated loss adjustment expenses, a year-over-year change in premiums ceded to reinsurers as well as recognition of loss severity trends in a few select jurisdictions.
•Net loss ratio: The full-year net loss ratio improved primarily because of the impact of 5.9 percentage points of favorable prior accident year reserve development. Reserve development was favorable for both the fourth quarter and full-year, largely reflecting favorable claims-closing trends in the Medical Professional Liability business.
•Underwriting expense ratio: The full year ratio rose 1.5 percentage points largely due to higher compensation costs. However, the fourth-quarter underwriting expense ratio improved over last year’s fourth quarter due to an adjustment in the prior year quarter for full year unallocated loss adjustment expenses, with no impact to our combined ratio.
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WORKERS’ COMPENSATION INSURANCE SEGMENT RESULTS
Three Months Ended December 31Year Ended December 31
($ in thousands)20242023% Change20242023% Change
Gross premiums written
$46,112 $47,033 (2.0 %)$243,404 $246,857 (1.4 %)
Net premiums written
$29,559 $28,005 5.5 %$166,223 $162,285 2.4 %
Net premiums earned$42,918 $38,328 12.0 %$167,610 $160,034 4.7 %
Other income (expense)
403 289 39.4 %1,887 1,854 1.8 %
Total revenues43,321 38,617 12.2 %169,497 161,888 4.7 %
Net losses and loss adjustment expenses
(32,503)(37,508)(13.3 %)(128,483)(139,322)(7.8 %)
Underwriting, policy acquisition and operating expenses(17,990)(14,139)27.2 %(61,999)(55,061)12.6 %
Total expenses
(50,493)(51,647)(2.2 %)(190,482)(194,383)(2.0 %)
Segment results$(7,172)$(13,030)45.0 %$(20,985)$(32,495)35.4 %

WORKERS’ COMPENSATION INSURANCE SEGMENT KEY RATIOS
Three Months Ended December 31Year Ended December 31
2024202320242023
Current accident year net loss ratio77.0 %97.9 %77.0 %81.3 %
Effect of prior accident years’ reserve development(1.3 %)— %(0.3 %)5.8 %
Net loss ratio75.7 %97.9 %76.7 %87.1 %
Underwriting expense ratio41.9 %36.9 %37.0 %34.4 %
Combined ratio117.6 %134.8 %113.7 %121.5 %
ProAssurance is a specialty regional underwriter of workers’ compensation products and services. The Workers’ Compensation Insurance segment combined ratio improved 17.2 percentage points compared to the fourth quarter of 2023 and improved 7.8 percentage points for the full year.
•Premiums: Higher audit premiums were the primary reason for the increase in net written premiums for the quarter and year. We continue to carefully manage our underwriting appetite due to market conditions. Retention in the fourth quarter was 83% although we saw improved renewal pricing. New business in our traditional book was $3.0 million, down from $5.0 million in last year’s fourth quarter.
•Net loss ratio: Current accident year net loss ratio of 77.0% for the fourth quarter and full year improved 4.3 percentage points from 81.3% for full-year 2023. We continue to observe and reflect the higher medical loss cost trends that we initially saw in the second half of 2023, although they have begun to moderate this year. Fourth quarter and full year net favorable prior accident year reserve development was $0.5 million. In 2023, the segment strengthened reserves due to the higher than expected loss trends observed at that time.
•Underwriting expense ratio: The segment underwriting expense ratio rose 5.0 percentage points from the prior year fourth quarter and 2.6 percentage points for the full year, largely due to an adjustment in ceding commissions charged to our segregated portfolio cells relating to prior periods as well as higher compensation costs.


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SEGREGATED PORTFOLIO CELL REINSURANCE SEGMENT RESULTS
Three Months Ended December 31Year Ended December 31
($ in thousands)20242023% Change20242023% Change
Gross premiums written$12,437 $14,335 (13.2 %)$57,904 $70,259 (17.6 %)
Net premiums written$10,693 $12,375 (13.6 %)$49,950 $61,129 (18.3 %)
Net premiums earned$12,351 $15,390 (19.7 %)$52,698 $61,546 (14.4 %)
Net investment income921 664 38.7 %3,608 2,289 57.6 %
Net investment gains (losses)42 1,850 (97.7 %)2,369 3,680 (35.6 %)
Other income (expense)
18 2800.0 %19 5 280.0 %
Net losses and loss adjustment expenses(5,983)(9,120)(34.4 %)(32,466)(36,363)(10.7 %)
Underwriting, policy acquisition and operating expenses(3,959)(5,213)(24.1 %)(18,063)(20,457)(11.7 %)
SPC U.S. federal income tax (expense) benefit(1)
(724)(278)160.4 %(1,766)(1,629)8.4 %
SPC net results2,666 3,295 (19.1 %)6,399 9,071 (29.5 %)
SPC dividend (expense) income (2)
(1,965)(3,064)(35.9 %)(4,444)(6,234)(28.7 %)
Segment results (3)
$701 $231 203.5 %$1,955 $2,837 (31.1 %)
(1) Represents the provision for U.S. federal income taxes for SPCs at Inova Re, which have elected to be taxed as a U.S. corporation under Section 953(d) of the Internal Revenue Code. U.S. federal income taxes are included in the total SPC net results and are paid by the individual SPCs.
(2) Represents the net (profit) loss attributable to external cell participants.
(3) Represents our share of the net profit (loss) and OCI of the SPCs in which we participate.
SEGREGATED PORTFOLIO CELL REINSURANCE SEGMENT KEY RATIOS
Three Months Ended December 31Year Ended December 31
2024202320242023
Current accident year net loss ratio
58.1 %68.0 %66.8 %65.5 %
Effect of prior accident years’ reserve development
(9.7 %)(8.7 %)(5.2 %)(6.4 %)
Net loss ratio
48.4 %59.3 %61.6 %59.1 %
Underwriting expense ratio32.1 %33.9 %34.3 %33.2 %
Combined ratio80.5 %93.2 %95.9 %92.3 %
Segregated Portfolio Cell Reinsurance segment results include underwriting profit or loss plus investment results, net of U.S. federal income taxes of segregated portfolio cells in which we participate. For the fourth quarter, the segment reported a profit of $0.7 million compared to $0.2 million in last year’s fourth quarter. The fourth quarter of 2024 segment results improved reflecting an increase in reported loss activity during the prior year quarter; however, the full-year segment result was lower in 2024, reflecting an increase in severity-related claim activity.

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CORPORATE SEGMENT
Three Months Ended December 31Year Ended December 31
($ in thousands)20242023% Change20242023% Change
Net investment income$35,890 $33,041 8.6 %$140,930 $126,130 11.7 %
Equity in earnings (loss) of unconsolidated subsidiaries:
All other investments, primarily investment fund LPs/LLCs4,986 1,452 243.4 %21,532 9,196 134.1 %
Tax credit partnerships834 (111)851.4 %671 (2,405)127.9 %
Total equity in earnings (loss) of unconsolidated subsidiaries:5,820 1,341 334.0 %22,203 6,791 226.9 %
Net investment gains (losses)(3,285)8,322 (139.5 %)(7,206)5,148 (240.0 %)
Other income (expense)
9,208 2,960 211.1 %11,489 8,307 38.3 %
Operating expenses(10,194)(9,184)11.0 %(40,008)(34,007)17.6 %
Interest expense(5,339)(6,672)(20.0 %)(22,342)(23,150)(3.5 %)
Income tax (expense) benefit(2,566)(3,356)(23.5 %)(10,401)545 2008.4 %
Segment results$29,534 $26,452 11.7 %$94,665 $89,764 5.5 %
Consolidated effective tax rate13.7%34.5%16.4%1.4%
The Corporate segment, which includes investment results for our Specialty P&C and Workers’ Compensation Insurance segments, continues to contribute meaningfully to operating results and reported earnings of $29.5 million for the quarter.
•Net investment income: The current interest rate environment continues to benefit our net investment income, which increased again in the quarter, driven by higher average book yields on our fixed maturity investments. During the quarter, we reinvested at an average new money rate of approximately 5.8% for the consolidated portfolio, exceeding the rate on maturing assets and our consolidated average book yield of 3.5%.
•Equity in earnings of unconsolidated subsidiaries: Our investments in limited partnerships, typically reported to us on a one-quarter lag, continued to produce strong returns in the quarter and full-year.
•Other income (expense): Reflected changes in exchange rates for foreign currency denominated loss reserves, which are not included in our operating results.
•Operating expenses: The year-over-year increase in expenses in the quarter and full-year was largely due to higher compensation-related costs.
•Net investment gains and losses: While not included in our operating results, net investment losses in the quarter were driven by unrealized holding losses from changes in the fair value of our equity investments while net investment losses for the year largely were due to credit-related impairment losses and, to a lesser extent, net losses from the sale of certain available-for-sale fixed maturity securities.


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NON-GAAP FINANCIAL MEASURES
Non-GAAP Operating Income (Loss)
Non-GAAP operating income (loss) is a financial measure that is widely used to evaluate performance within the insurance sector. In calculating Non-GAAP operating income (loss), we have excluded the effects of the items listed in the following table that do not reflect normal results. We believe Non-GAAP operating income (loss) presents a useful view of the performance of our ongoing core insurance operations; however, it should be considered in conjunction with net income (loss) computed in accordance with GAAP. The following table reconciles net income (loss) to Non-GAAP operating income (loss):
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP OPERATING INCOME (LOSS)
Three Months Ended December 31Year Ended
December 31
($ in thousands, except per share data)
2024202320242023
Net income (loss)$16,169 $6,377 $52,744 $(38,604)
Items excluded in the calculation of Non-GAAP operating income (loss):
Net investment (gains) losses (1)
3,243 (10,672)(1,903)(13,828)
Net investment gains (losses) attributable to SPCs in which no profit/loss is retained (2)
30 1,504 1,773 2,925 
Transaction-related costs (3)
— — 320 — 
Goodwill impairment— — — 44,110 
Foreign currency exchange rate (gains) losses (4)
(8,140)3,484 (6,731)2,993 
Non-operating income (5)
— (5,416)— (6,878)
Guaranty fund assessments (recoupments)(2)28 (873)57 
Non-core operations (6)
6,010 (217)3,331 (1,683)
Pre-tax effect of exclusions1,141 (11,289)(4,083)27,696 
Tax effect, at 21% (7)
958 2,147 (69)1,894 
After-tax effect of exclusions2,099 (9,142)(4,152)29,590 
Non-GAAP operating income (loss)$18,268 $(2,765)$48,592 $(9,014)
Per diluted common share:
Net income (loss)$0.31 $0.12 $1.03 $(0.73)
Effect of exclusions0.05 (0.17)(0.08)0.56 
Non-GAAP operating income (loss) per diluted common share$0.36 $(0.05)$0.95 $(0.17)
(1) Net investment gains (losses) recognized in earnings are primarily driven by changes in the value of investments that are marked to fair value each period, the nature and timing of which are unrelated to our normal operating results. Net investment gains (losses) for the year ended December 31, 2024 include the $6.5 million decrease to the contingent consideration liability during the second quarter of 2024. Net investment gains (losses) during the quarter and year ended December 31, 2023, include gains of $0.5 million and $5.0 million, respectively, related to the remeasurement of the contingent consideration liability to fair value. See further discussion around the contingent consideration in Notes 2 and 8 of the Notes to Consolidated Financial Statements in our December 31, 2024 report on From 10-K.
(2) Net investment gains (losses) on investments related to SPCs are recognized in our Segregated Portfolio Cell Reinsurance segment. SPC results, including any net investment gain or loss, that are attributable to external cell participants are reflected in the SPC dividend expense (income). To be consistent with our exclusion of net investment gains (losses) recognized in earnings, we are excluding the portion of net investment gains (losses) that is included in the SPC dividend expense (income) which is attributable to the external cell participants.
(3) Transaction-related costs are attributable to actuarial consulting fees paid during the second quarter of 2024 in relation to the final determination of contingent consideration associated with the NORCAL acquisition. We are excluding these costs as they do not reflect normal operating results and are unique and non-recurring in nature.
(4) Foreign currency exchange rate movements relate to foreign currency denominated loss reserves predominately associated with premium assumed from an international medical professional liability insured in our Specialty P&C segment. Our participation in this program has grown in recent years which has led to greater volatility in our results of operations even with nominal movements in exchange rates given the size of the reserve. We mitigate foreign exchange rate exposure on our Consolidated Balance Sheet by generally matching the currency and duration of associated investments to the corresponding loss reserves as well as utilizing foreign currency forward contracts. When we invest in foreign currency denominated available-for-sale fixed maturities, in accordance with GAAP, the change in market value due to changes in foreign currency exchange rates is reflected as a part of OCI. Conversely, the impact of changes in foreign currency exchange rates on loss reserves is reflected through net income (loss) as a component of other income (expense). Therefore, we believe foreign currency exchange rate gains (losses) in our Consolidated Statements of Income and Comprehensive Income in isolation are not indicative of our operating performance. To be consistent with our exclusion of foreign currency exchange rate gains (losses) recognized in earnings, we are excluding the associated foreign currency forward contract. Additional information regarding our foreign currency forward contract is provided in Note 11 of the Notes to the Consolidated Financial Statements in our December 31, 2024 report on From 10-K.
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(5) Non-operating income includes proceeds associated with the sale of our remaining ownership interest in the underwriting and operations entity associated with Syndicate 1729 to unrelated third parties recognized in other income in our Corporate segment. We are excluding these costs as they do not reflect normal operating results and are unique and non-recurring in nature.
(6) Non-core operations includes the net results from our Lloyd's Syndicates operations from our previous participation in Syndicate 1729 and Syndicate 6131 at Lloyd's of London, which is currently in run off. Net investment gains (losses) recognized in earnings associated with these investments are included in the adjustment for consolidated net investment gains (losses) as described in footnote 1. We are excluding these results from our Lloyd's Syndicates operations as they are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under GAAP.
(7) Our statutory tax rate was applied to these items in calculating net income (loss), excluding the 2023 goodwill impairment loss which is not tax deductible. Changes in the contingent consideration liability are non-taxable and therefore had no associated income tax impact. The taxes associated with the net investment gains (losses) related to SPCs in our Segregated Portfolio Cell Reinsurance segment are paid by the individual SPCs and are not included in our consolidated tax provision or net income (loss); therefore, both the net investment gains (losses) from our Segregated Portfolio Cell Reinsurance segment and the adjustment to exclude the portion of net investment gains (losses) included in the SPC dividend expense (income) in the table above are not tax effected. There are no taxes associated with our Lloyd’s Syndicates operations in our consolidated tax provision due to the availability of net operating losses and the full valuation allowance recorded against the deferred tax assets. Accordingly, both the net investment gains (losses) and the adjustment to exclude the underwriting results and net investment income associated with our previous participation included in Lloyd's Syndicates operations in the table above are not tax effected.
Non-GAAP Operating ROE
The following table is a reconciliation of ROE to Non-GAAP operating ROE for the quarter and year ended December 31, 2024 and 2023:
Three Months Ended
December 31		Year Ended
December 31
2024202320242023
ROE(1)
5.3 %2.4 %4.6 %(3.5 %)
Effect of items excluded in the calculation of Non-GAAP operating ROE
0.7 %(3.4 %)(0.4 %)2.7 %
Non-GAAP operating ROE6.0 %(1.0 %)4.2 %(0.8 %)
(1) Quarterly amounts are annualized. Refer to our December 31, 2024 report on Form 10-K under the heading “Non-GAAP Operating ROE” in the Executive Summary of Operations section for details on our calculation.
Non-GAAP Adjusted Book Value per Share
The following table is a reconciliation of our book value per share to Non-GAAP adjusted book value per share at December 31, 2024 and December 31, 2023:
Book Value Per Share
Book Value Per Share at December 31, 2023
$21.82 
Less: AOCI Per Share(1)
(4.01)
Non-GAAP Adjusted Book Value Per Share at December 31, 2023
25.83
Increase (decrease) to Non-GAAP Adjusted Book Value Per Share during the year ended December 31, 2024 attributable to:
Net income (loss)
1.03 
Non-GAAP Adjusted Book Value Per Share at December 31, 2024
26.86 
Add: AOCI Per Share(1)
(3.37)
Book Value Per Share at December 31, 2024
$23.49 
(1) Primarily the impact of accumulated unrealized investment gains (losses) on our available-for-sale fixed maturity investments. See Note 12 of the Notes to Consolidated Financial Statements in our December 31, 2024 report on Form 10-K for additional information.
SPECIALTY P&C SEGMENT KEY RATIOS
Our Specialty P&C segment results as reported for the three months and year ended December 31, 2024 and 2023 includes the underwriting results from our previous participation in Syndicate 1729 and Syndicate 6131 at Lloyd's of London, which is currently in run-off. Given these underwriting results are irrelevant to our ongoing operations and do not qualify for Discontinued Operations under GAAP, we have excluded the impact from our calculation of Specialty P&C segment key ratios; however, these ratios should be considered in conjunction with ratios computed in accordance with GAAP. The following table is a reconciliation of our Specialty P&C segment key ratios to Non-GAAP adjusted ratios at December 31, 2024 and December 31, 2023:
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Three Months Ended December 31
20242023
Segment As Reported Lloyd’s Syndicates OperationsNon-GAAP Adjusted RatiosSegment As ReportedLloyd’s Syndicates OperationsNon-GAAP Adjusted Ratios
Current accident year net loss ratio82.7 %0.2  pts82.9 %77.5 %0.5  pts78.0 %
Effect of prior accident years’ reserve development(5.2 %)(3.5  pts)(8.7 %)(0.7 %)(0.5  pts)(1.2 %)
Net loss ratio77.5 %(3.3  pts)74.2 %76.8 %—  pts76.8 %
Underwriting expense ratio26.8 %(0.1  pts)26.7 %28.1 %(0.1  pts)28.0 %
Combined ratio104.3 %(3.4  pts)100.9 %104.9 %(0.1  pts)104.8 %
Year Ended December 31
20242023
Segment As Reported Lloyd’s Syndicates OperationsNon-GAAP Adjusted RatiosSegment As ReportedLloyd’s Syndicates OperationsNon-GAAP Adjusted Ratios
Current accident year net loss ratio82.3 %0.5  pts82.8 %82.6 %0.9  pts83.5 %
Effect of prior accident years’ reserve development(5.0 %)(0.9  pts)(5.9 %)0.1 %(0.4  pts)(0.3 %)
Net loss ratio77.3 %(0.4  pts)76.9 %82.7 %0.5  pts83.2 %
Underwriting expense ratio27.2 %(0.1  pts)27.1 %25.8 %(0.2  pts)25.6 %
Combined ratio104.5 %(0.5  pts)104.0 %108.5 %0.3  pts108.8 %
Conference Call Information
ProAssurance management will discuss fourth quarter and full year 2024 results during a conference call at 10:00 a.m. ET on Tuesday, February 25, 2025. Preregistration for the call is available at https://www.netroadshow.com/events/login?show=8579b77e&confId=78143 and the dial-in numbers are (833) 470-1428 (toll free) or (404) 975-4839, access code 927016.
Investors are encouraged to listen to the live audio webcast, at https://events.q4inc.com/attendee/675415924, of the call that can also be accessed via the Events page of the Company’s website. A replay of the call will be available at the same location later in the day on February 25.
About ProAssurance
ProAssurance Corporation is an industry-leading specialty insurer with extensive expertise in medical professional liability and products liability for medical technology and life sciences. The Company also is a provider of workers’ compensation insurance in the eastern U.S. ProAssurance Group is rated “A” (Excellent) by AM Best.
For the latest on ProAssurance and its industry-leading suite of products and services, cutting-edge risk management and practice enhancement programs, visit our website at https://ProAssuranceGroup.com with investor content available at https://Investor.ProAssurance.com. Our YouTube channel regularly presents insightful videos that communicate effective practice management, patient safety and risk management strategies.
Caution Regarding Forward-Looking Statements
Any statements in this news release that are not historical facts or explicitly stated as an opinion are specifically identified as forward-looking statements. These statements are based upon our estimates and anticipation of future events and are subject to significant risks, assumptions and uncertainties that could cause actual results to differ materially from the expected results described in the forward-looking statements. Forward-looking statements are identified by words such as, but not limited to, “anticipate,” “believe,” “estimate,” “expect,” “hope,” “hopeful,” “intend,” “likely,” “may,” “optimistic,” “possible,” “potential,” “preliminary,” “project,” “should,” “will,” and other analogous expressions.
Although it is not possible to identify all of these risks and factors, they include, among others, the following: inadequate loss reserves to cover the Company's actual losses; inherent uncertainty of models resulting in actual losses that are materially different than the Company's estimates; adverse economic factors; a decline in the Company's financial strength rating; loss of one or more key executives; loss of a group of agents or brokers that generate significant portions of the Company's business; failure of any of the loss limitations or exclusions the Company employs, or change in other claims or coverage issues; adverse performance of the Company's investment portfolio; adverse market conditions that affect its excess and surplus lines insurance operations; and other risks described in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this release and the Company does not undertake and specifically declines any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
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Investor Update Accurate as of February 24, 2025 Fourth Quarter and Full Year 2024 Investor Update Learn more: • News release issued February 24 • 10-K filed February 24 • Quarterly investor call February 25

 
©2025 ProAssurance • All rights reserved. 2 Our Shared Vision We will be the best in the world at understanding and providing solutions for the risks our customers encounter as healers, innovators, employers, and professionals. Through an integrated family of specialty companies, products, and services, we will be a trusted partner enabling those we serve to focus on their vital work. As the Employer of Choice, we embrace every day as a singular opportunity to reach for extraordinary outcomes, build and deepen superior relationships, advance diversity, equity, and inclusion, and accomplish our mission with infectious enthusiasm and unbending integrity. Our Core Values • Unbending Integrity • Leadership That Works • Superior Relationships • Infectious Enthusiasm The ProAssurance Mission: We protect others. Over 1,000 Team Members Serving Insureds in 50 states and Washington, D.C. Net Earned Premium for Full-year 2024 $968 million Total Assets at Year-end 2024 $5.6 billion Shareholder's Equity at Year-end 2024 $1.2 billion A.M. Best Rating "A" (Excellent)

 
©2025 ProAssurance • All rights reserved. 3 ProAssurance Corporation (SNL P&C Group) 2024 Reported: MPL Direct Premiums Written > $45 million $25-45 million $15-25 million $5-$15 million < $5 million Top-four* Medical Professional Liability (MPL) carrier with $684 million of net earned premiums in 2024 and market share* near 6%; total segment net earned premiums of $748 million Specialty Property & Casualty Segment Contributes 77% of ProAssurance 2024 Net Earned Premiums • Medical Professional Liability business primarily insuring physicians and other healthcare providers and facilities • Segment includes Medical Technology Liability (life sciences), which contributed $32 million to 2024 net earned premium • Strategic initiatives over the past five years have solidified ProAssurance’s position as carrier of choice for medical professional liability coverages, leading to improved retention among smaller customers and improving accident year loss ratio. *Based on prior year industry data

 
©2025 ProAssurance • All rights reserved. 4 Remainder of ProAssurance Premiums from Workers’ Compensation Insurance and Segregated Portfolio Cell Reinsurance Segments 2024 Net Earned Premiums of $968 million $168 Million Workers’ Compensation Insurance (Eastern Insurance) Specialty regional underwriter of workers’ compensation products and services; addressing market challenges with innovation initiatives to enhance profitability. $53 Million Segregated Portfolio Cell Reinsurance (Inova Re) Segregated Portfolio Cell Company structure offering both workers’ compensation and medical professional liability coverage in a Cayman-based captive, generating fee income for ProAssurance. • Corporate is ProAssurance's fourth segment. • Reports investment results except those in Segregated Portfolio Cell Reinsurance segment, interest expense, U.S. and U.K. income taxes. • Includes corporate expenses and non-premium revenues generated outside of insurance entities. ProAssurance Corporate Segment

 
©2024 ProAssurance • All rights reserved. 5 Operational Discipline Designed for Success in Competitive Markets

 
©2025 ProAssurance • All rights reserved. 6 Operations – Insurance underwriting results for the fourth quarter of 2024 illustrate management’s ongoing actions to achieve sustained profitability • Our expertise in medical professional liability and workers’ compensation means we identified loss trends ahead of peers and have responded appropriately ▪ Medical professional liability market is challenging due to rising severity that reflects social inflation and eroding tort reform, exacerbated by legal system abuse ▪ Workers' compensation market challenged by rising medical costs per claim ▪ We will not grow for growth’s sake - better to shrink to improved profitability; we are not afraid to walk away from underpriced business ▪ New and renewal business is being written at rates we believe will ultimately perform better than the business we are non-renewing Corporate – Non-GAAP adjusted book value per share was $26.86 at December 31, 2024 • There is embedded value in ProAssurance and we will consider repurchasing shares opportunistically ▪ Very strong balance sheet with high quality investment portfolio with over 90% in investment grade fixed maturities and adequate liquidity ▪ Financial leverage stable at 24% ▪ Strong net investment income growth reflects higher new purchase yields and supports return to sustained profitability Returning to Long-Term Sustained Profitability is Our Highest Priority Operating earnings improved sequentially for the fifth consecutive quarter and our confidence continues to grow that actions we have taken over the past several years have us on track to achieve our objectives

 
©2025 ProAssurance • All rights reserved. 7 Corporate Provide strong net investment income stream to bolster underwriting contribution • Leverage current interest rate environment to increase portfolio yield • Consolidate statutory entities to maximize efficiency and capital utilization • Manage talent-acquisition and retention strategies to maximize value of work force Workers’ Compensation Insurance Minimize impact of medical inflation • Improve efficiency with newly implemented integrated policy, claims, risk management, and billing systems • Reduce loss costs by managing selection of providers and implementing cost management programs ▪ Optimize network and medical management partners • Leverage investments in InsurTech underwriting, AI and claims data analytics to: ▪ Improve penetration in more profitable small account market segment ▪ Improve efficiency by expanding use of AI in underwriting and claims Strategic Initiatives - Addressing Challenging Markets Specialty Property & Casualty Restore profitability and support appropriate growth • Obtain rate beyond loss cost trend • Distinguish ProAssurance as carrier of choice for medical professional liability coverages ▪ Use technology to support superior customer experiences for our distribution partners and policyholders ▪ Prioritize needs of more profitable small to mid-size accounts ▪ Launch state-of-the-art workflow solution and online portal ▪ Implement straight-through processing technologies to reduce costs • Invest in innovation solutions that enhance risk selection, pricing accuracy and workflows ▪ Leverage our data science and predictive analytics capabilities to support growth in appropriate markets and sub-sectors • Assist insureds with strategies to mitigate future losses

 
©2025 ProAssurance • All rights reserved. 8 Specialty P&C segment combined ratio from ongoing core operations improved 3.9 percentage points* compared to last year’s fourth quarter, while the full-year combined ratio improved 4.8 percentage points*. We are benefiting from our continued focus on price adequacy and disciplined underwriting as well as our ability to target segments within healthcare where there are opportunities to write business that we believe will meet our profitability. • Underwriting and pricing actions taken over the past 12 months had a positive impact on both the fourth quarter and full year 2024 current accident year loss ratios for the Medical Professional Liability business, although fourth quarter benefit was overshadowed by a prior year decrease to our estimate of unallocated loss adjustment expenses, a year-over-year change in premiums ceded to reinsurers as well as recognition of loss severity trends in a few select jurisdictions. Prior accident year reserve development was favorable again for the fourth quarter, improving the full-year net loss ratio due to favorable development by 5.9 percentage points*. This largely reflected favorable claims- closing trends in the Medical Professional Liability business. • Renewal pricing remained strong at 8% for the quarter and 9% for the full-year while retention remained solid. New business was below last year for the quarter and the full-year as we focus on risk selection and pricing levels that support progress toward our profitability targets. Fourth Quarter Operating EPS* of 36 Cents; Full year at 95 Cents Comparisons to fourth quarter 2023 unless otherwise noted . *Represents a Non-GAAP financial measure that excludes certain items that are not indicative of the performance of our ongoing core operations, including net investment gains and losses, foreign currency exchange rate gains and losses, and results of non-core operations. Non-core operations include the net results from our previous participation in Lloyd's Syndicates operations, which is currently in run-off. See a reconciliation to their GAAP counterparts under the heading "Non-GAAP Financial Measures" section in our latest quarterly news release on Form 8-K filed on February 24, 2025. • Specialty P&C segment combined ratio of 100.9%* demonstrates another quarter of progress from management’s ongoing actions focused on achieving sustained profitability • Net investment income rose 9% as we take advantage of the current interest rate environment as our portfolio matures Workers’ Compensation Insurance segment combined ratio improved 17.2 percentage points compared to last year's fourth quarter and improved 7.8 percentage points for the full year. • Current accident year net loss ratio of 77.0% for the fourth quarter and full year improved 4.3 percentage points from 81.3% for full-year 2023. We continue to observe and reflect the higher medical loss cost trends that we initially saw in the second half of 2023, although they have begun to moderate this year. Fourth quarter net favorable prior accident year reserve development was $0.5 million. In 2023, the segment strengthened reserves due to the higher than expected loss trends observed at that time. • Higher audit premiums were the primary reason for the increase in net written premiums for the quarter and year. We continue to carefully manage our underwriting appetite due to market conditions. Retention in the fourth quarter was 83% although we saw improved renewal pricing. New business in our traditional book was $3.0 million, down from $5.0 million in last year’s fourth quarter.

 
©2024 ProAssurance • All rights reserved. 9 ProAssurance Overview

 
©2025 ProAssurance • All rights reserved. 10 A Foundation in Excellence SUPERIOR BRAND IDENTITY AND REPUTATION IN THE MARKET SCOPE & SCALE Regional hubs combined with local knowledge of market dynamics and regulatory environments HISTORY OF SUCCESSFUL MERGERS & ACQUISITIONS Selective M&A with best-in-class partners, and nearly 20 transactions in our 47-year history EXPERIENCED & COLLABORATIVE LEADERSHIP Average executive leadership tenure of 20 years with PRA or subsidiaries SPECIALIZATION Deep expertise and commitment to our customers throughout the insurance cycles enable us to outperform our peers over time “Our long history in our markets makes us confident that the cyclical lines of insurance where we do business will respond to our focused efforts.” -Ned Rand, President & CEO

 
©2025 ProAssurance • All rights reserved. 11 • Deep expertise and broad product spectrum in healthcare and related sciences • Consolidation in MPL → demand for comprehensive insurance solutions • Life Sciences → offer liability solutions to companies that develop, test, and deliver healthcare products in the U.S. and worldwide • Business mix shift since 2019 reflects continued focus on price adequacy and disciplined underwriting as well as our ability to target segments within healthcare where there are opportunities to write business profitability Specialty Property & Casualty Segment $ in millions Medical Professional Liability Coverages Accounted for over 90% of the Segment’s $807 Million of Gross Written Premiums in 2024

 
©2025 ProAssurance • All rights reserved. 12 2019 2020 2021 2022 2023 2024 Cumulative +65% Renewal Pricing* Change Since 2018 • Medical professional liability market facing increasingly unfavorable legal environment exacerbated by legal system abuse • ProAssurance focus on underwriting discipline has constrained growth ▪ Select competitors have been operating with capital levels that have allowed them to compete with pricing and underwriting standards that we believe are unsustainable ▪ ProAssurance has maintained retention levels in the mid-80s over the past five years, despite the competitive environment • Continue to rely on claims management expertise honed over nearly 50 years in this market ▪ We spend more on defense preparation than other carriersAnnual Renewal Pricing Change 8.9% 11.9% 7.7% 7.2% 7.8% 11.0% Reflects early recognition of shift in Medical Professional Liability market cycle Annual renewal pricing changes with benefit of cumulative prior year actions 8.9% 21.9% 31.3% 40.7% 51.6% 68.2% * Renewal pricing reflects changes in our exposure base, deductibles, self-insurance retention limits and other policy terms and conditions.

 
©2025 ProAssurance • All rights reserved. 13 Managing Risk While Enhancing Competitive Posture • Limit growth except in appropriate markets and subsectors ▪ Consider specialty and venue severity when establishing underwriting appetite ▪ Continue strategic shift toward small to midsize accounts and less risky Specialty accounts ▪ When appropriate, apply more restrictive terms and/or E&S solutions • Continue ongoing efforts to enhance our risk selection, pricing decisions and workflows: ▪ Bringing data science, predictive analytics, workflow solutions and other tools on line ▪ Utilizing data analytics to establish multi-tier risk models and improve retention of higher performing business • Focus on being Carrier of Choice via underwriting flexibility, product innovation, responsiveness, consistency and excellent customer experience; price is not the only criteria ▪ Launched new web portal to promote full agency partner and insured self service options – December 2024 ▪ Continuing enhancements of new business and renewal work flows using new system functionality and automation – 2025 ▪ In process of filing fully revised policy form and manuals for use nationwide for all legacy NORCAL and legacy ProAssurance Standard business - two- to three-year filing and approval process $793.7 $789.8 $754.7 $800.3 $823.9 $813.8 $804.1 $769.8 $742.3 $741.8 85.0% 93.5% 91.1% 101.3% 104.0% 102.4% 85.6% 81.5% 84.5% 81.9% NEP Net Loss & LAE 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 More than 20 Point Improvement in Net Loss and LAE Ratio for Specialty P&C* Since 2019 Reflects Benefits of Premium Increases and Strategic Initiatives * Accident Year Schedule P data including ULAE for combined ProAssurance Group excluding Workers' Compensation subsidiaries. Data excludes large account loss from 2019 and 2020.

 
©2025 ProAssurance • All rights reserved. 14 Payroll Exposure by Market Segment Demonstrates Diversification of Workers’ Compensation Insurance Segment Business Serving over 32 Market Segments, Primarily in Rural Territories as of 12/31/2024 *Excludes alternative markets business ceded to the Segregated Portfolio Cell Reinsurance segment $ in millions • Proactive claim-closing strategies key to being recognized as a short- tail writer of workers’ compensation ▪ Between 2013 and 2022, averaged approximately 40% faster claims closure rate than industry ▪ 32 claims open from 2016 and prior, net of reinsurance ▪ Pharmacy spend as a percent of medical payments of 3.4% compared to the industry average of 7% • Value-added risk management services and claims/underwriting expertise build brand loyal

 
©2025 ProAssurance • All rights reserved. 15 Workers’ Compensation Insurance Segment Addressing Market Challenges With Innovation Initiatives • Implemented new integrated policy, claims, risk management and billing systems, paving the way for innovation initiatives • Expand use of data analytics to guide and support operational decisions in underwriting and claims, focusing on improving ease of doing business for agency partners and insureds • Capitalize on InsurTech investments, including AI, underwriting and claims data analytics, to enhance profitability, productivity and efficiency ▪ Adopted Clara Analytics AI Platform to lower medical costs and achieve better outcomes ▪ Implemented GuideWire for underwriting of more profitable small account business ▪ Added Roots Automation “digital co-workers” capabilities to improve efficiency and effectiveness of underwriting and claims teams Use cases for Clara Analytics, a real-time augmented intelligence partner with workers’ comp expertise focused on providing optimal insurance claims outcomes, include: • Lower medical and indemnity costs with the best providers • Predict severity and balance adjuster caseload at first notice of loss • Gain insights and save expense by collating, searching and analyzing claim medical bills and records with treatment timelines and smart alerts • Grading defense and plaintiff attorneys on their outcomes in past similar claims

 
©2025 ProAssurance • All rights reserved. 16 Agency group or association establishes a cell SERVICES INCLUDE • Underwriting • Claims Administration • Risk Management • Reinsurance • Audit • Asset Management Services + Cell Rental Fees + Participation in profits/losses of selected cells Fee Income to PRA • Strategic partnerships with select independent agencies looking to manage controllable expenses • Alternative market solutions are in high demand • Value-added risk management services and claims/underwriting expertise • 2024 gross premiums written of $58 million ▪ Workers’ Compensation Insurance: $55 million ▪ Medical Professional Liability: $3 million ▪ 20 active cells Individually capitalized cells (companies) exist within the Inova Re structure. Assets and liabilities of each are segregated from others. Workers’ Comp and Medical Professional Liability businesses participate in select cells. ProAssurance Front Arrangement Through Inova Segregated Portfolio Cell Reinsurance Segment Segregated portfolio cells for medical professional liability and workers’ compensation provide captive insurance solutions that generate fee income with low capital requirements

 
©2025 ProAssurance • All rights reserved. 17 Details of our investment portfolio are available on our website at https://investor.proassurance.com/financial-information/quarterly-investment-supplements More than 90% Fixed Maturity Portfolio in Investment Grade Bonds • New money yield of 5.8% in fourth quarter • Effective stewardship of capital ensures a position of financial strength through turbulent market cycles • Optimizing our allocations for better risk- adjusted returns. Ensures non-correlation of returns • Ongoing analysis of holdings to ensure lasting quality and profitability Total Investments of $4.4 billion (full-year 2024) Consolidated Portfolio Statistics 4Q24 4Q23 Average Income Yield 3.5% 3.1% Weighted Average Duration 3.22 3.25 Fixed Maturity Credit Quality (at year-end 2024) Fixed Maturities Trading, 1% Other Invested Assets, 1% Short Term, 5%State/Muni, 10% Unconsolidated Subs, 6% US Govt/Agency, 6% Asset-backed Securities, 26% BOLI, 2% Common Stock - Trading, 3% Corporate, 40% AA+ 20% AA 6% AA- 5% A+ 7% A 11% A- 11% BBB+ 5%BBB 8% BBB- 4% Below IG or Not Rated 7% AAA 16%

 
©2025 ProAssurance • All rights reserved. 18 Contribution of Net Investment Results Rose 23% in 2024 ($ in thousands) 2024 Beginning Equity $ 1,111,980 Employee Stock Transactions 4,927 Earnings 52,744 OCI 32,098 Total Equity $ 1,201,749 Net Investment Income ($ in millions) 12/31/2024 12/31/2023 Change Fixed maturities $133,577 $113,721 $19,856 Equities 4,758 4,610 148 Short-term investments including Other 12,463 15,476 (3,013) BOLI 2,316 2,489 (173) Investment fees and expenses (8,576) (7,877) (699) Net investment income $144,538 $128,419 $16,119 Equity in earnings (loss) of unconsolidated subsidiaries 22,203 6,791 15,412 Net investment result $166,741 $135,210 $31,531

 
©2025 ProAssurance • All rights reserved. 19 • ProAssurance maintains a balance sheet that ensures stability and security for our customers ▪ Targeted Premiums to Equity ratio is 0.75X • Our reserving philosophy enables success over the insurance cycles ▪ Net loss reserves of $3.3 billion at December 31, 2024 • $426 million total debt principal at December 31 ▪ $181 million of Contribution Certificates from NORCAL acquisition ▪ $120 million Term Loan ▪ $125 million Revolving Credit Agreement Financial and Operating Leverage Appropriate for Current Business Mix and Ratings AM Best Affirmed “A+” (Superior) Financial Strength Rating of Insurance Subsidies in June 2024 0.59 0.63 0.72 0.75 0.69 16% 24% 24% 25% 24% Premiums to Equity (excluding AOCI) Debt to Capital 2020 2021 2022 2023 2024

 
©2024 ProAssurance • All rights reserved. 20 Appendix

 
©2025 ProAssurance • All rights reserved. 21 ProAssurance Executive Leadership Executive Team bios available on our website at Investor.ProAssurance.com/OD Ned Rand - President & Chief Executive Officer Mr. Rand became President and CEO in 2019, after serving as COO, CFO, Executive VP, and Senior VP of Finance at ProAssurance since joining the company in 2004. Prior to joining ProAssurance, he served in a number of financial roles for insurance companies. Mr. Rand is a CPA and graduate of Davidson College (B.A., Economics) Dana Hendricks Executive Vice President & Chief Financial Officer Jeff Lisenby Executive Vice President & General Counsel Rob Francis President Medical Professional Liability Kevin Shook President, Workers’ Compensation & Segregated Portfolio Cell Reinsurance Karen Murphy President Life Sciences Insurance Noreen Dishart Executive Vice President & Chief Human Resources Officer

 
©2025 ProAssurance • All rights reserved. 22 ProAssurance Board of Directors Director bios available on our website at Investor.ProAssurance.com/OD Maye Head Frei Compensation Committee Chair Katisha T. Vance, MD Nominating/Corporate Governance Committee Chair Samuel A. Di Piazza, Jr Compensation Committee and Executive Committee Kedrick D. Adkins, Jr Audit Committee Chair Bruce D. Angiolillo, J.D. Independent Chair Executive Committee Chair Scott C. Syphax Nominating/Corporate Governance Committee Fabiola Cobarrubias, MD Audit Committee and Nominating/Corporate Governance Committee Edward L. Rand, Jr Executive Committee Richard J. Bielen Audit Committee Staci M. Pierce, J.D. Compensation Committee

 
©2025 ProAssurance • All rights reserved. 23 ProAssurance Group Brands Alternative Risk Transfer Workers’ CompensationSpecialty Property & Casualty MEDICAL PROFESSIONAL LIABILITY INSURANCE FOR ANESTHESIOLOGISTS

 
©2025 ProAssurance • All rights reserved. 24 Forward Looking Statements This presentation contains Forward Looking Statements and other information designed to convey our projections and expectations regarding future results. There are a number of factors which could cause our actual results to vary materially from those projected in this presentation. The principal risk factors that may cause these differences are described in various documents we file with the Securities and Exchange Commission, such as our Current Reports on Form 8-K, and our regular reports on Forms 10-Q and 10-K, particularly in “Item 1A, Risk Factors.” Please review this presentation in conjunction with a thorough reading and understanding of these risk factors. Non-GAAP Measures This presentation contains Non-GAAP measures, and we may reference Non-GAAP measures in our remarks and discussions with investors. The primary Non-GAAP measure we reference is Non-GAAP operating income (loss), a Non-GAAP financial measure that is widely used to evaluate performance within the insurance sector. In calculating Non- GAAP operating income (loss), we have excluded the after-tax effects of net realized investment gains or losses, foreign currency exchange gains or losses, non-core operations and guaranty fund assessments or recoupments that do not reflect normal operating results. We believe Non-GAAP operating income presents a useful view of the performance of our core insurance operations, but should be considered in conjunction with net income (loss) computed in accordance with GAAP. A reconciliation of these measures to GAAP measures is available in our regular reports on Forms 10-Q and 10-K and in our latest quarterly news release, all of which are available in the Investor Relations section of our website, Investor.ProAssurance.com. Important Safe Harbor and Non-GAAP Notices

 
25 Contact: Heather J. Wietzel SVP, Investor Relations 205-776-3028 InvestorRelations@ProAssurance.com Investor.ProAssurance.com Mailing Address: ProAssurance Corporation 100 Brookwood Place Birmingham, AL 35209

 
v3.25.0.1
Document and Entity Information Document
Feb. 24, 2025
Cover [Abstract]  
Document Type 8-K
Entity Registrant Name ProAssurance Corporation
Entity Incorporation, State or Country Code DE
Entity File Number 001-16533
Entity Tax Identification Number 63-1261433
Entity Central Index Key 0001127703
Amendment Flag false
Entity Address, Address Line One 100 Brookwood Place,
Entity Address, City or Town Birmingham,
Entity Address, State or Province AL
Entity Address, Postal Zip Code 35209
City Area Code (205)
Local Phone Number 877-4400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol PRA
Security Exchange Name NYSE
Entity Emerging Growth Company false
Document Period End Date Feb. 24, 2025
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